The conveyancing process in Singapore is a vital legal procedure for transferring property ownership between buyers and sellers. It involves several essential steps, from obtaining the Option to Purchase (OTP) to finalizing the Sale & Purchase Agreement. Here’s a simplified guide to help you understand the conveyancing process and navigate it effectively.

Steps for Buyers

1. Obtain the Option to Purchase (OTP)

• Make a minor payment, typically 1% of the property’s price, to the seller for the OTP document. You have a 14-day period to determine whether you wish to purchase the property.

2. Confirm Your Purchase

• Use the OTP by signing it and paying the exercise fee (typically 4% of the price). The seller’s lawyer will be informed by your lawyer.

3. Conduct Your Checks and Organize Financing

• Your lawyer will confirm that the property is clear of any problems (such as unpaid loans or conflicts). Obtain a loan or utilize CPF savings to fund the purchase.

4. Complete the Sale & Purchase Agreement

• Enter into a formal agreement with the seller. A deposit will also be required, which is 20% of the property price and includes the OTP and exercise fees.

5. Pay Stamp Duty 

• Make sure to pay the Buyer’s Stamp Duty (BSD) or Additional Buyer’s Stamp Duty (ABSD), based on your situation.

6. Finalize the Purchase

• On the completion day (approximately 8-12 weeks later), settle the remaining balance. Obtain the title deed and keys to your new residence!

Steps for Sellers

1. Issue the Option to Purchase (OTP) 

• Once you receive the option fee, provide the OTP to the buyer.

2. Prepare Documents  

• Your lawyer will make sure that all essential documents, such as title deeds and mortgage redemption statements, are prepared.

3. Get Ready for Handover

• Ensure the property is in excellent shape for the buyer.

4. Finalize the Sale

• On the day of completion, you will receive the final payment after settling loans and other expenses. Transfer the keys and ownership of the property.

Important Points to Note

• Regarding HDB Properties: HDB flats come with additional requirements such as eligibility checks and necessary approvals.

• Hire a Lawyer: Conveyancing lawyers take care of the legal documents and payments on your behalf.
• Budget for Expenses: Buyers and sellers need to account for stamp duties, legal fees, and other associated costs.

This clear guide simplifies the conveyancing process in Singapore. Whether you are purchasing or selling, having a competent lawyer and a solid grasp of the process can significantly impact the outcome! Contact Adel Law now!